Limited service – PSI

15 Jun 2020

37.2

May

+11.5

Monthly Change

contracting

slower rate

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Kirk Hope

Chief Executive, BusinessNZ

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Activity in New Zealand’s services sector improved somewhat for May after its lowest ever result in April, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for May was 37.2, which was 11.5 points up from April (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  This was just above the March result, but still showing strong contraction for the month.

BusinessNZ chief executive Kirk Hope said that the result for May was similar to that of the manufacturing sector, with improvements made but still well below anything considered business as usual.

"The proportion of negative comments for May (72.9%) did drop from 91% in April.  Looking ahead, around two-thirds of June will be at level 1, so we would expect ongoing improvements in activity in the months ahead". 

BNZ Senior Economist Doug Steel said that "we’d caution that just being allowed to open doesn’t guarantee more activity. Standing back, there is no denying the outright level of the PSI remains woeful and still sits well below the lows at around 45 recorded during the 2008/09 recession".

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

The PSI

The Performance of Services Index (PSI) still looked terrible in May. However, at 37.2, it is a fair bit less terrible than April’s 25.7. The lift follows the removal of some shackles as New Zealand moved down COVID alert levels. Further improvement can be expected over coming months on similar grounds.
Read more

Employment Falls Further

Less bad readings in May compared to April were seen in nearly all areas across industries, regions, firm sizes, and major components. One glaring exception was employment, which fell further, reflecting still very poor conditions through May.
Read more

Spending Bounces

Electronic card transactions – as an indicator of spending – also looked less bad in May. Indeed, at face value the seasonally adjusted 80.7% lift in total transactions in the month looked very strong, but given it followed a near halving in April, transactions remain more than 12% below year earlier levels.
Read more

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National IndiciesMay
2019
Jan
2020
Feb
2020
Mar
2020
Apr
2020
May
2020
BNZ - BusinessNZ PSI 54.057.252.137.025.737.2
Activity/Sales 56.155.354.430.210.632.5
Employment51.952.850.446.142.440.9
New Orders/Business56.863.654.533.716.135.1
Stocks/Inventories56.258.651.451.445.545.4
Supplier Deliveries52.156.944.044.025.241.0

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

July 2014 – May 2020

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
3 Jun 2020

36.3

International PSI

BNZ - BusinessNZ PCI

37.7

GDP-Weighted Index

38.2

Free-Weighted Index

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) saw the two options for measuring the PCI both improve from the previous month.

The May GDP-Weighted Index (37.7) increased 12.2 points from April, while the Free-Weighted Index (38.2) rose 14.4 points.

PCI Time Series Table

The results are seasonally adjusted.

National IndicesMay
2019
Jan
2020
Feb
2020
Mar
2020
Apr
2020
May
2020
GDP-Weighted Index 53.856.452.436.225.537.7
Free-Weighted Index52.653.253.236.323.838.2

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

July 2014 – May 2020

PCI Time Series Graph